Debt is a major contributor to stress. There is a direct correlation between the epic rise in anti-depressant prescriptions and the percentage of Canadians who find themselves overwhelmed with debt.
How Bad is it?
This percentage has grown at an alarming rate over the past three decades.
It is now estimated that an astounding thirty-five percent of Canadians are in Credit Crisis.
Credit Crisis includes the obvious numbers of us who are failing to make ends meet every month and fall behind on bills. It also includes the less than obvious who occasionally will borrow on their Master Card to make the Visa payment and the next month may borrow on their line of credit to pay their credit card payments.
These people may not even realise they are in Credit Crisis, as the optimist in them tells them that in six months, or maybe a year, they will somehow turn their cash flow around and get their financial feet underneath them again.
Read the fine print on your credit card statements and you will find that if you are making minimum monthly payments, you will be in debt for the rest of your life.
Why are so many in a Credit Crisis?
It’s not an accident, it’s designed that way. Banks and Credit Card companies only make money if you are in debt to them. Banks and Credit Card companies seduced us to use credit cards, even though we may have cash for our purchases, by offering incentives.
These include discounts on merchandise if purchased with credit, air miles, bonus points, etc. Their goal is to have us use credit until we reach the point that we are only able to make the minimum payments to keep our cards current and protect that all important credit rating. This is a carefully laid trap that many of us fall into.
These people feel trapped, and they should. Short of winning the lottery or receiving a large inheritance, they will literally not outlive their debt. This is where the stress comes in.
People awake at two in the morning, wondering how they will meet their financial commitments, are losing sleep. This affects their functions at work and their productivity may be affected, not unnoticed by the boss.
Collection agencies are unmerciful and relentless in their pursuit of people behind on their payments. These calls are demeaning and the debtor begins to feel like a failure, hopeless, stressed out.
Stress leads to anxiety, anxiety can lead to depression and depression can even lead to suicide.
What to do if you think you are in a Credit Crisis?
Debtors should explore all solutions available to them. There is an alternative to Bankruptcy that allows a debtor to collectively make an offer to all unsecured creditors to pay a fraction of their debt, usually around twenty to twenty-five cents on the dollar, in the form of a low monthly payment, at ZERO percent interest over a specific period of time.
This is called a Consumer Proposal. It is a formal process which, once accepted, is binding on all parties. These are accepted by creditors almost all the time and are much preferred to Bankruptcy.
It is advisable to use a professional Debt Consultant to assess your circumstances and explore your options.
For more information contact Chris Grew today by either calling him directly or visit his page using the link below.
Chris Grew
Victoria, BC Office
Tel: 250-880-1618
